Jakarta (Indonesia Window) – Taiwan’s semiconductor industry accounts for 30 percent of national exports, and 14 percent of its Gross Domestic Product (GDP).

The semiconductor industry on the Formosa Island has continued thriving with 247 companies registered with Taiwan's Ministry of Economy in 2020, according to a written statement from the Taipei Economic and Trade Office (TETO) received by Indonesia Window here on Sunday.

Not only does the semiconductor industry serve as the foundation of the digital era, but also bring a very important technology in the development of future innovations, especially with the emergence of high-performance computing (HPC), Artificial Intelligence (AI), 5G mobile communications, and the Internet of Things (IoT).

According to the International Semiconductor Industry Association (SEMI), the total value of Taiwan's semiconductor production in 2019 reached 2.66 trillion NTD (about 94.93 billion U.S. dollars), or 16.9 percent of the world's total value.

This figure puts Taiwan in the third place in the global production of semiconductor technology.

The value grows by 3.3 percent in 2020, increasing to 16.7 percent.

The value of semiconductor production in Taiwan is estimated at 3.2 trillion NTD (about 114.2 billion U.S. dollars), surpassing those of Vietnam and South Korea, and will rank second in the world after the United States.

That production consists of IC (integrated circuit) designs reaching 850 billion NTD (about 30.3 billion U.S. dollars), with an estimated annual growth rate of 22.7 percent.

Meanwhile, the IC manufacturing production value will reach 1.8 trillion NTD (about 64.2 billion U.S. dollars), with an annual increase of 23.7 percent; and the production value of IC packaging and testing will be 550 billion NTD (about 19.6 billion U.S. dollars), with an annual increase of 10 percent.

Taiwan's advantages are not only on technology manufacturing and industrial chains, but also global competitiveness in production costs.

In addition, the Taiwanese engineers have extraordinary personalities and patience in solving all manufacturing obstacles in order to create the great achievements of the Formosa Island semiconductor domain.

With the development of the semiconductor industry increasing, Taiwan is in control of the development of future application technologies.

Reporting by Indonesia Window